One Reason to Buy Big-Ticket Items at Costco — Even if They’re Cheaper Elsewhere

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Costco’s prices aren’t always the lowest. But read on to see why it often pays to make bigger purchases there. [[{“value”:”

Many people rely on Costco for everyday purchases like groceries, paper goods, and cleaning supplies. But if you’ve ever wandered those aisles or spent much time browsing its website, you know that Costco’s inventory consists of more than just food and household goods.

Costco also sells everything from furniture to apparel to electronics. So while a typical Costco run might cost you $100 to $150, if you’re buying a TV, your credit card tab could easily exceed the $1,000 mark.

Now one reason to buy bigger-ticket items from Costco is that the warehouse club giant often has the lowest prices available — especially when there’s a limited-time special to enjoy. But Costco doesn’t always have the best prices, so it’s important to shop around when you’re buying something out of the ordinary you expect to keep for a long time, like a dining table, laptop, or kitchen appliance.

That said, sometimes, it pays to buy your big-ticket items at Costco even if the store’s price isn’t the best. Here’s why.

It’s all about flexibility and convenience

With few exceptions, Costco allows you to return any item you buy from the store (or online) for any reason. It could be that the item doesn’t work the way you expected it to, or it could be that you simply don’t like it.

It’s for this reason that you may want to buy bigger-ticket items at Costco even if they’re cheaper at another store. If you choose another retailer, you might save a bit of money. But you might also lose the ability to return a purchase you don’t end up loving, thereby getting stuck with something like a TV or refrigerator you no longer want.

Even when Costco does impose a time limit for returning items, which is the case with electronics and appliances, it could pay to turn to Costco if the price difference isn’t all that much compared to another retailer. That’s because you still get 90 days to take back items in these categories.

For example, right now, Costco is selling the HP x360 14″ Touchscreen 2-in-1 Chromebook Laptop for $150 off of its normal price, bringing your total cost to $299.99 if you buy it online. You may find a different (generally lower) price at your local warehouse club store.

You can find the same item on Amazon for $279, but you’ll only have 30 days to return it if you don’t end up liking it. With Costco, you get three times as long to make a return, plus a free second-year warranty and no-cost tech support in case you run into issues setting up or learning to use your device. And all of this comes at a cost to you of just $21.

Sometimes, it makes sense to pay more

If you’re making a larger purchase and Costco’s price is considerably higher than that of another retailer, then it may not make sense to buy from Costco. There’s no need to spend $500, for example, on a laptop that another retailer is selling for $300. But when the price difference is pretty modest, as in the example above, it could make sense to pay more for the added flexibility.

It’s sort of like paying a little bit more for a refundable flight. You might spend an extra $80 on your ticket, bringing your cost to $480 instead of $400. But if you need to cancel your plans, you’re not out the $400 — you get all of your money back.

Similarly, because of Costco’s generous return policy, you can potentially save big if a purchase doesn’t work out for you. So it pays to spend a little extra for that peace of mind.

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The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Maurie Backman has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Costco Wholesale. The Motley Fool has a disclosure policy.

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